German research institute Ifo Institute reported Thursday that Ifo index for world economy suffers setback in the third quarter compared to the improvement seen in the second quarter.

The results of Ifo World Economic Survey show that the index for world economy fell by 4.5 index points to 86.0 in the third quarter, 10 index points below its long-term average. It is also the lowest level in last over three years.

According to experts of the survey, upward trend in the second quarter grounded to a halt in nearly all regions in the third quarter.

Their assessments of the current economic situation remain unfavorable and their economic expectations are far more negative than the second quarter.

"Sentiment in the world economy is subdued," Ifo president Clemens Fuest commented.

In addition, the survey also shows that the average short-term interest rates worldwide are expected to remain almost stable over the next six months, while long-term interest rates will increase in the second half of 2016.

Ifo institute has conducted a quarterly survey in numerous countries on business cycle developments and other economic factors since 1981. The results of this survey are based on responses of more than 1,000 experts from over 100 countries and regions.

Source : XINHUA